Luxury brands power festive push with social media, influencers, cross-brand partnerships

India has become one of the most thriving markets for luxury goods. It is currently the fastest growing in Asia and is poised to generate a revenue of more than $8 billion by 2028, as per Statista. Moving beyond the country’s elite, the primary drivers for luxury goods today include the affluent consumers, along with an increase in the number of ultra-high-net-worth individuals. As of 2024, prestige cosmetics and fragrances and luxury watches and jewellery have had the highest revenue, amounting to over $2 billion, respectively. Contrastingly, luxury eyewear has reported a revenue of about $344 million.

It was back in the year 2002, which saw the entry of the first luxury brand in India when French brand Louis Vuitton opened its outlet. It was followed by other international luxury fashion brands like Gucci, Chanel, Balenciaga, Hermes, and more.

Indian designers JJ Valaya, Rohit Bal, Sabyasachi Mukherjee and Manish Malhotra have also carved a niche for themselves in the high-end designer apparel space, led by celebrities from the movie and business world.

The retail sector has played a major role in the growth of the luxury market in India. The opening of Jio World Plaza in Mumbai in 2023, has been a game-changer for the luxury business. The mall includes over 70 internationally recognized luxury brands.

Digital transformation has made luxury brands more accessible as luxury e-commerce has set foot in prominent online marketplaces such as Tata CliQ Luxury, Myntra, Ajio, and Nykaa.

In this report, Adgully explores the luxury market in India and the factors driving its growth. We have spoke to a cross-section of some Indian luxury brands and how they are geared up for the festive season this year, as well as how they are engaging with their exclusive TG.

Luxury marketing during festive season

Speaking about his brand’s festive plans, Vikas Jaggi, Founder, Vanshik, said, “As a heritage men’s wear designer, the festive season offers a unique opportunity to connect with customers and showcase your brand’s cultural significance. We see a significant surge in demand for traditional and festive wear during this period. To capitalize on this, we plan to launch targeted marketing campaigns that highlight the significance of our heritage wear in modern times. Some key initiatives include, social media campaigns, collaborations, events and pop-ups throughout the country.”

Radhika Ghai, CEO and Founder, Kindlife, too said, “The festive season is a pivotal time for us, and our strategy is centered around personalization and discovery. We aim to make it easier than ever for people to explore and indulge in the best of Korean and Japanese beauty. One of our key tools in achieving this is kiki.AI, our proprietary AI tool that drives true personalization for each customer, tailoring recommendations to their unique preferences.”

She further added, “We’re also partnering extensively with creators during this period. Our ‘kind champions’ program, which includes over 5,000 creators and experts, plays a significant role in helping their communities discover the latest and best beauty drops. Additionally, live shopping on our app is set to be a major feature, offering customers an interactive and engaging shopping experience. Gifting is another major focus for us during the festive season. Both our customers and business partners appreciate the curated, innovative, and interesting gifting options we offer, which are designed to stand out and delight.”

Apoorva Pandey, CMO, Baby Forest Ayurveda, said, “The festive season significantly shapes our marketing strategy by offering a chance to connect deeply with our audience. This year, our approach includes a major CSR initiative in October, where we’ll partner with NGOs to support underprivileged communities, reflecting our commitment to social responsibility. We’re also collaborating with prominent celebrities to boost our visibility and engagement through social media promotions and exclusive events. Additionally, strategic cross-brand partnerships will enable us to offer unique co-branded products, enhancing the festive experience for our customers. To celebrate Diwali, we’ll be thoughtfully curating gift hampers featuring our premium products with an essence of festivities.”

“The festive season offers a fantastic opportunity to capitalize on the increased consumer spending and heightened interest in self-care and beauty,” said a spokesperson from The Face Shop India. He listed the following initiatives that the company has planned to engage with its audience and enhance brand presence during this peak shopping period:

• Exclusive new launches with ecommerce channels - Introducing limited-edition products through select ecommerce channels to heighten exclusivity and appeal
• Limited edition festive kits - Created exclusive K- beauty gifting sets with our best-sellers in retail stores to enhance the shopping experience
• Exclusive Merchandise - Creating unique, merchandise that adds a touch of festive charm in your celebrations
• Never seen before festive offers - Rolling out unprecedented festive deals to attract and excite customers on the website (https://thefaceshop.in/), retail stores & e-commerce channels
• Engagement with brand ambassador - We will leverage our brand ambassador Khushi Kapoor to drive overall awareness around all our marketing initiatives for festive season
• Fun social media contests & influencer collaborations - Running engaging and festive-themed contests to boost interaction and brand visibility on social platforms. Also, collaborating with influencers to promote our festive initiatives
• Cross-brand collaborations - Collaborating with like-minded brands to attract new audiences, and provide exclusive products or experiences that delight customers especially during festive season

Evolution of the luxury sector

Vikas Jaggi noted, “The luxury sector has undergone significant and mammoth changes over the last 5-7 years. The key developments and growth drivers being primarily the application of development in the digital world. Luxury Fashion has become aspirational, accessible and experiential, but has a cause and effect. This is eased by the digital transformation, where accessibility and marketing is seamless.”

Apoorva Pandey mentioned several key factors that have contributed to the significant growth in the luxury:

1. Changing Consumer Preferences: Consumer preferences have shifted towards experiences and personalized products. Luxury brands have responded by offering tailored services, exclusive events, and limited-edition collections to cater to these evolving desires.
2. Increased Focus on Sustainability: Consumers are becoming more conscious of sustainability and ethical practices. Luxury brands that prioritize eco-friendly materials, fair labor practices, and social responsibility are gaining popularity and attracting a loyal customer base.
3. Education and Lifestyle: The rising education levels and changing lifestyles have contributed to the growth of the luxury sector. As people become more affluent and knowledgeable, they are willing to invest in luxury goods as a symbol of status, success, and self-expression.
4. Sustainability and Ethical Practices: Ayurveda’s emphasis on natural and sustainable practices resonates with consumers who are increasingly conscious of environmental and ethical concerns. Luxury brands that embrace Ayurvedic principles can position themselves as sustainable and responsible.

The Face Shop India spokesperson highlighted the following key growth factors:

• Digital Transformation: The shift to online shopping has accelerated, with luxury brands enhancing their digital presence through e-commerce platforms and social media. This has made luxury goods more accessible for consumers, particularly during the festive season.
• Personalization: Luxury brands are now offering customized products, bespoke services, and limited-edition items that cater to individual references and enhance the sense of exclusivity.
• Influencer and Social Media Impact: The rise of social media influencers and content creators has played a significant role in shaping luxury brand perceptions. Influencers have become key partners in promoting luxury items and creating buzz around festive collections.
• Limited editions: Exclusive releases that are only available in limited quantities generate a feeling of urgency, which in turn drives demand.

Consumer engagement

Describing the TG for Vanshik, Vikas Jaggi said, “Our target audience is the modern, style-conscious man who values tradition. He is the one who appreciates quality, craftsmanship, and attention to detail. He is looking for unique, exclusive, and authentic heritage wear that reflects his personality and values. He sees this as an investment in high-quality products and is interested in the stories and craftsmanship behind them. As this will be a part of an heirloom.”

Radhika Ghai added here, “Our primary audience for the festive campaigns is Gen Z, the young, vibrant segment. We’re Young India’s go-to destination. To engage them effectively, content will be crucial in driving conversations. We’ve noticed that Diwali, for instance, has evolved beyond just the makeup for the day. Pre- and post-beauty prep have become essential rituals that our audience is deeply interested in. Moreover, we’re aware that Gen Z is increasingly conscious of their lifestyle choices, including what they consume. They’re looking for low-calorie, sugar-free, and healthier options, even during festive celebrations. Our campaigns will reflect this shift, offering innovative and fresh alternatives that go beyond traditional brands, aligning with their desire for something new and exciting.”

Apoorva Pandey said, “Our festive campaigns primarily target new moms, moms-to-be, and parents of young children. These demographics are particularly receptive to festive messages and are often looking for thoughtful gifts for their little ones.”

The various ways in which Baby Forest Ayurveda engages with its TG includes:

Festive-Themed Email Campaigns: Sending personalized email campaigns with festive greetings, exclusive offers, and product recommendations will nurture customer relationships.

Social Media Contests and Giveaways: Engaging contests and giveaways, such as "Share Your Festive Moments" or "Win a Festive Gift Hamper," will encourage user participation and generate buzz around our brand.

Limited-Edition Festive Collections: Introducing exclusive, festive-themed products will create a sense of excitement among our target audience.

The Face Shop India’s primary target group for the festive campaigns consists of millennials and Gen Z, and consumers in the 18-35 age group, who are passionate about skincare and beauty. To engage them effectively, the company plans to leverage channel marketing, social media, influencer marketing, create interactive and engaging content, offer exclusive products and promotions, and emphasize its commitment to clean beauty. “By combining these strategies, we aim to captivate their interest and drive meaningful interactions during the festive season,” the spokesperson said.